Funds

IAF

India Aspiration Fund set up by SIDBI with the support of RBI pursuant to a budget announcement is a Rs 2000 crore fund introduced by SIDBI with a vision to promote and accelerate equity and equity linked investments in Start-ups and MSMEs. IAF contributes to the corpus of SEBI registered Alternative Investment Funds (AIFs), with sector agnostic investments specifically involving MSMEs as key strategic investment sectors

IAF would not invest directly in companies, but would participate in the capital of Category I & II Alternative Investment Funds (AIF) registered with Securities and Exchange Board of India (SEBI). The AIF shall ensure minimum investment in MSME ventures, as stipulated below:

(a) If the corpus of the AIF is less than Rs.500 crore:

The AIF shall invest twice the contribution made by SIDBI or 50% of drawable corpus of the Fund, whichever is more, in MSME companies, as defined under MSMED Act, 2006 or as per the guidelines stipulated by SIDBI, from time to time.

(b) if the corpus of the AIF is more than or equal to 500 crore:

The AIF shall invest twice the contribution made by SIDBI or Rs.250 crore, whichever is more, in MSME companies, as defined under MSMED Act, 2006 or as per the guidelines stipulated by SIDBI, from time to time.

IAF is currently in divestment mode and no fresh applications for contribution are being accepted